Agri Commodity Update (5th February 2020)
Palm oil market hit by two ‘C’s: crude oil and coronavirus
A deadly combination of two ‘C’s has hit the palm oil market. A rapid decline in crude oil prices and the upheaval over the rapid spread of China-centered Wuhan Coronavirus has pummeled the palm oil market, bringing the bull run of the last three months to a premature end.
Crude palm oil (CPO) rates have seen a sharp correction of 10 percent from their recent peak, which translates to roughly $70 a tonne. Hopes of a decisive return to over $700 a tonne are turning slim, as there are uncertainties relating to global crude oil market and Chinese purchases of palm oil in the months ahead.
Support seen at 4060 while Resistance is 4130.
Break and sustain below 4060 will take it to 4000—3950 mark or else it can touch its resistance level of 4130 again.
Sell it on rise!
Soybean has its support at 4030 and resistance 4120.
Break and sustain below 4030 will see a fall till 3920---3850 levels or else it can touch its resistance level of 4120 again.
Fresh buying can be seen only on a close above 4120.
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